SGMA 591 Lecture Notes - Lecture 2: Pest Analysis, Life-Cycle Assessment, Competitor Analysis
2 Feb 2017
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Three components of external analysis: general environment (pest analysis, industry environment, individual competitors (competitor analysis) It is all down to luck: no. Some industries are in decline, others are growing fast: airline industry in the us has been growing very quickly, but it is still a tough industry to be in. The basic premise that underlies industry analysis is that the level of industry profitability is neither random nor entirely the result of industry-specific influences, it is determined by the industry"s underlying economic characteristics. The business environment of the firm consists of the external influences that affect its decisions and performance. How can managers monitor the vast array of possible influences: need to distinguish the vital from the merely important , classification schemes like pest can help, general environment, industry environment, and competitors. How macro-environmental factors might impact a firm. One firm"s threat can be another firm"s opportunity: in the midst of an overall decline in the air transport sector,
